Swala Oil and Gas (Tanzania) reports $0.47M Loss in H1 2017 Results
Dar es Salaam stock exchange listed Swala Oil and Gas (Tanzania) and a subsidiary of Swala Energy Limited. Swala Energy Limited is a public company listed on the Australian Securities Exchange has posted a $471,500 loss for the period that ended 30th June 2017 an improvement from the $481,800 the company registered in a similar period last year.
According to the unaudited financial statements the biggest expense by the company was prospecting and exploration which cost the company some $277,500 and operating and administration cost which cost the Tanzanian subsidiary $171,700.
The company which has been struggling financially still has future work commitments amounting to $8.6 million for its Tanzanian licenses and has registered the prospecting and exploration as a going concern given its inability to raise funds in the past.
“Should the company’s efforts to raise funds not succeed there will be material incertainty that may cast significant doubt on the Company’s ability to continue as a going concern and therefore whether it will be able to pay its debts as and when they fall due,” Swala Oil and Gas (Tanzania) told shareholders.
Just recently the company turned to the Dar and Kamapala based bourses seeking to offer bonds to local investors seeking more funds. According to the company the local tranche of 7-year retail bonds will have a coupon of 12-16% payable in either available funds or Swala shares at a 12.5% discount.
Swala Oil and Gas (Tanzania) is currently holding discussions with its investors including Exotix Partners which it engaged in 2016 to raise $130 million to ensure it is properly capitalized. The process intended to complete in June is awaiting legal diligence expected to end last month.
The company is currently in preparation for drilling of the Kito 1 prospect with drilling permits in the Kilosa Kilombero block already acquired and re engagements for service contractors already ongoing.
“The Company will continue with its work commitments for the first year on the first extension period in the Kilosa-Kilombero area and continue with business developments by applying for other licences in Tanzania and elsewhere,” said a statement by the company.
During the half in focus the company lost the Pangani license after expiry of the license after the end of the first extension without all commitments fulfilled.
Swala is the operator of Kilosa Kilombero license with 25% interest